MAXX ROXX, LLC VS. THE PLANNING BOARD OF MARGATE, NEW JERSEY (L-1462-18, ATLANTIC COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided November 30, 2020·No. A-0572-19T1·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-0572-19T1

MAXX-ROXX, LLC, Plaintiff-Appellant,

v.

THE PLANNING BOARD OF THE CITY OF MARGATE, NEW JERSEY,

Defendant-Respondent.

and ALLISON LAND and RON ABEL,

Defendants/Intervenors-

Respondents/Cross-Appellants.

Argued October 14, 2020 – Decided November 30, 2020 Before Judges Fisher, Gilson and Gummer.

On appeal from the Superior Court of New Jersey, Law Division, Atlantic County, Docket No. L-1462-18.

Guliet D. Hirsch argued the cause for appellant (Archer & Greiner PC, attorneys; Guliet D. Hirsch, on the briefs).

Elias T. Manos argued the cause for respondent.

Robert S. Baranowski, Jr. argued the cause for intervenors-respondents/cross-appellants (Hyland Levin Shapiro LLP, attorneys; Robert S. Baranowski, Jr. and Megan Knowlton Balne, on the briefs).

PER CURIAM This appeal arises out of an application seeking zoning variances so a residential home could be built on an undersized lot. Plaintiff Maxx-Roxx, LLC (M-R) appeals from an August 26, 2019 order dismissing its complaint in lieu of prerogative writs, which challenged the denial of its application for zoning variances by defendant the Planning Board of the City of Margate (Board). 1 Defendants/intervenors Allison Land and Ron Abel, who own properties adjacent to the lot plaintiff sought to develop, cross-appeal from the provision

1 The order under review expressly disposes of the first two counts of plaintiff's three-count complaint and declares itself to be a "final order" despite the absence of a disposition of the third count, which asserts an inverse condemnation claim. As we explain in Section II of this opinion, the judge should have dismissed the third count because the proper defendant was not joined and the claim was not ripe. Accordingly, we have deemed the third count to have been dismissed and we have exercised our discretion to consider the merits of the appeal.

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in the order that upheld the Board's determination that plaintiff's application was not barred under principles of res judicata.

We discern no error in the Board's ruling on the issue of res judicata. We also discern no taint in the proceedings before the Board and nothing arbitrary, capricious, or unreasonable in its denial of the application. Accordingly, we affirm the order in all respects.

I.

M-R owns a waterfront lot in a residential neighborhood in Margate (the Property). The Property is 30 feet wide and 100 feet deep, with an area of 3000 square feet. It is an undersized lot located in a residential zoning district (designated S-40), which requires lots to have 50 feet of width and 4000 square feet of area.

The boundaries of the Property were fixed sometime around 1914, and there has never been a residential structure or building on the Property. It has a bulkhead, which needs repair, two boat slips, and a concrete driveway. The Property has been undersized since the 1940s, when Margate adopted a zoning ordinance requiring minimum widths and lot size.

M-R purchased the Property sometime after 1979. Public records reflect that M-R initially acquired a 50% ownership interest in the Property for $1 and

A-0572-19T1

later acquired the remaining 50% ownership in 2015 for $75,000. Two of the members of M-R, Andrew and Elizabeth Feriozzi, applied to the Board for zoning variances from the minimum lot area and width requirements. 2 The Feriozzis planned to build a residential home that would be nineteen feet wide, forty feet deep, and forty-three feet high. Before the Board, the attorney representing the Feriozzis stated that the application was "based solely on hardship" as a "C-1 variance."

As part of the process, the Feriozzis sent letters to Land and Abel, offering to buy land from them to bring the Property into conformance or sell them the Property. Land made an offer to buy the Property for $150,000. M-R rejected this offer and counteroffered to sell the Property for $600,000. In response, Land increased her offer to $200,000. M-R did not accept Land's counteroffer.

On March 22, 2018, the Board conducted a public hearing on the variance application. At the beginning of the hearing, Land and Abel, who were represented by an attorney, requested that the Board reject the application based on a 1979 application that they contended precluded the Feriozzis' application under principles of res judicata. In 1979, the Board had considered, but denied,

2 At the time of the application, M-R had three members: the Feriozzis and John Scott Abbott, who was the Margate Solicitor.

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an application by a predecessor owner of the Property that sought variances to build a residential home. The Board found that res judicata did not apply because the new application was not substantially similar and conditions around the Property had substantially changed. The Board then proceeded to hear the merits of the application.

In support of the application, the Board heard testimony from Andrew Feriozzi, Jon Barnhart, a professional planner and engineer hired by the Feriozzis, and Robert Keijdan, the applicants' architect. In opposition, the Board heard testimony from Land, Abel, other members of the public, and Creigh Rahenkamp, a professional planner retained by Land and Abel.

In summary, Feriozzi testified that he planned to build a single-family home on the Property. Keijdan described the proposed dwelling. Barnhart offered opinions on the positive and negative criteria of the variance application. Addressing the positive criteria, Barnhart asserted that unless the variances were granted, the Property would have no practical use. Concerning the negative criteria, Barnhart testified that the lot width and area variances could be granted without substantial detriment to the public good and without substantially impairing the zoning plan or ordinance. In that regard, Barnhart contended that the proposed home, although on a small lot, was in character with the

A-0572-19T1

surrounding homes. He also pointed out that there were several undersized lots with homes in the neighborhood, and that the Board had approved variances for some of those homes.

In opposition, Land testified about her offers to purchase the Property and submitted two appraisals: one that appraised the Property in its current condition for $150,000, and another that appraised the Property for $275,000, assuming it received variances to build a home. In response, the Feriozzis argued that they had obtained an appraisal that valued the Property at $600,000 , assuming that the variances were granted.

Land and Abel also testified that the proposed home would impair the neighborhood's quality of life and was detrimental to the surrounding homes. Several other residents also objected, contending that the proposed dwelling was not in character with the homes in the neighborhood.

Rahenkamp, the professional planner retained by Land and Abel, opined that there was no undue hardship because the Property was improved with a bulkhead and boat slips and could be used as a marina. He also contended that the proposed dwelling would have negative impacts to the neighborhood, and that it was inconsistent with the open light and air called for in the Margate zoning plan.

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Following the close of the testimony, the chair of the Board, Richard Patterson, voiced his opposition to the application. He described the Property as "grossly understated" and distinguished it from variance-approvals given to other undersized lots. Patterson also referenced a photograph of the Property that another Board member had sent to him.

Several Board members made comments on the application when voting.

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MAXX ROXX, LLC VS. THE PLANNING BOARD OF MARGATE, NEW JERSEY (L-1462-18, ATLANTIC COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

MAXX ROXX, LLC VS. THE PLANNING BOARD OF MARGATE, NEW JERSEY (L-1462-18, ATLANTIC COUNTY AND STATEWIDE) (MAXX ROXX, LLC VS. THE PLANNING BOARD OF MARGATE, NEW JERSEY (L-1462-18, ATLANTIC COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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